BOMA and CCI Drive Energy Efficiency in Old Buildings

DENVER, Colo. — The Building Owners and Managers Association (BOMA) International and the Clinton Climate Initiative have created a standardized business contract geared toward making it easier for owners of existing buildings to perform energy efficiency retrofits.

The BOMA Energy Performance Contract Model is an energy performance contract between building owners, energy service companies and financial institutions. The organizations, along with USAA Real Estate Co., launched a pilot program in January to test the model using two commercial buildings.

Under the model’s financial structure, the collateral is derived from the building’s assets, rather than the building. The loan is repaid with the energy savings guaranteed under the retrofit while the loan market interest is extended by financial institutions.

"Improving energy efficiency and financial performance is a growing priority for property owners, but energy retrofits have often been complicated, time consuming and cost prohibitive," said Brenna Walraven, BOMA chairman and chief elected officer.

“The marketplace now has an industry-vetted, streamlined, cost effective and time efficient ‘model' contract that building owners, energy service companies and financial institutions can use to facilitate the implementation of major energy retrofit projects in publicly and privately-owned buildings."

Energy performance contracting, with its limited financing options and execution timeframe that can last 18 to 36 months, has yet catch on in the private sector although it has been around for more than two decades.